AT1 Schedule 29 (Alberta Innovation Employment Grant)

AT1 Schedule 29 (AS29) calculates the Alberta Innovation Employment Grant tax credit. This tax credit applies to eligible expenditures incurred as of January 1, 2021.

For more information on this tax credit, see the following:

• Information Circular IEG-1 : Alberta Innovation Employment Grant
• Guide to Claiming the Alberta Innovation Employment Grant

To calculate and claim the credit, enter eligible expenditures in the project table on the AS29Project worksheet (AT4970), then complete the two-step process on the AS29Step worksheet. The refundable tax credit then flows from the AS29 to line 129 on the AT1 jacket.

1. On the AS29Project worksheet, select the project title from the list of project names in column 101. This list includes the projects entered on the federal S60.
2. When you select a project name, TaxCycle automatically completes the project code in column 103.
3. If the corporation’s tax year end straddles January 1, 2021, and the federal SR&ED expenditures for a particular project were incurred after December 31, 2020, and before January 1, 2021, create two rows for the project: one for pre-January 1, 2021, expenditures and one row for post-December 31, 2020, expenditures.
4. In the row for pre-January 1, 2021, expenditures, answer Yes in both the column for transitional instructions (column with the asterisk * heading) and the Incurred before 2021? column.
5. In the row for post-December 31, 2020, expenditures, answer Yes in the column for transitional instructions (column with the asterisk * heading) and No in the Incurred before 2021? column.
   
6. Complete the remaining columns on the AS29Project worksheet.
7. TaxCycle automatically adds “before January 1, 2021” and “after December 31, 2020” to the rows on the printed copy of the worksheet.
   
8. Complete the AS29Step worksheet to calculate the tax credit using the two-step calculation process.
9. The AS29 calculates the tax credit and transfers it to line 129 of the AT1 jacket.